Security market size driven by rising safety concerns

Rising security concerns and increasing budget allotment for physical security are expected to drive the global physical security systems market in the coming years, which was valued at USD $51.94 billion in 2013.

Technological advancement along with cost-effective security systems are projected to boost the demand for physical security over the forecasted period. The industry is likely to reach a value of USD $110.09-billion by 2020, growing at a CAGR of 11.3% from 2014 to 2020.

The increasing adoption of innovative technologies such as cloud, intelligent and analytics-based security systems is anticipated to enhance the safety process across several industry verticals. Rising investment in hybrid solutions for real-time monitoring is expected to bolster growth over the forecast period.

Migration towards Cloud-based security systems

Increasing migration towards Cloud-based security systems is an upcoming trend and is expected to witness significant growth in the coming years owing to cost-effective expenditure and lower false alarms response. The cloud-based security system comprises of various services such as IoT (Internet of things), the third-party safety, electronic security and mobile internet security practices.

Hardware components accounted for 75.4% of the overall market share in 2013 and are likely to witness growth at 11.5% CAGR by 2020. Hardware includes biometrics, RFID, video surveillance and card-based access. Rising terrorist attacks coupled with damages of the necessary infrastructure are likely to drive the segment over the forecasted period.

Infrastructure development and efficient transportation systems

Transportation was the largest application segment valued at USD $10.77 billion in 2013. Rising expenditure on infrastructure development and efficient transportation systems are the key reasons for growth. Although the segment is likely to lose its market share to other applications, it is expected to remain the dominating segment by 2020 accounting for 20.1% of the overall industry.

Utilization of physical security in government-related applications is projected to witness a substantial growth at 12.7% CAGR from 2014 to 2020. Increasing safety measures across numerous domains of the government to protect classified information is expected to drive growth. BFSI solutions are delivering to data centers, corporate buildings, ATMs, data centers and cash depots. Technological advancement in IT, as well as rising smart-security demand, has widened the growth prospects of system security practices.

Expected to grow in the near future

North America market accounted for 35.0% of the overall market in 2013 and is expected to grow in the near future owing to rising technological shift towards physical security systems, supportive government regulations and growing demand from high-growth business verticals in the region. North America market is expected to reach USD 35.17 billion by 2020, growing at a CAGR exceeding 9.5% from 2014 to 2020.

Asia-Pacific market is anticipated to witness significant growth on account of increasing demand for physical security systems due to rising criminal activities. Asia-Pacific market is estimated to reach USD 39.07 billion, growing at a CAGR of 13.6% by 2020. Rapid improvement of the mobile banking, ATMs, online payments and mobile payments has increased the concern level for user information administration.